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In this paper, we investigate how opportunities to invest in demand enhancing services for a product line affect the interactions between a manufacturer and her dealer. Many demand enhancing services, e.g. after sales support, warranty repair etc. can be provided either by the manufacturer or they can be delegated to the dealer. We first show that when a(More)
In a supply chain, investments that a ¯rm makes in reducing its own variable costs provide an obvious bene¯t to its suppliers: All else being equal, lower marginal costs cause the ¯rm to increase its own output, hence increasing consumption of suppliers' outputs. Without pre-commitment to wholesale prices from its supplier(s), a ¯rm will tend to underinvest(More)
We consider how a merger between two naturally differentiated dealers affects their interactions with a common supplier, and identify conditions under which the merger can increase or decrease the combined net worth of the two firms. Among other things, we find that the attractiveness of merging depends critically upon which level of the supply chain has(More)
We investigate how a quantity discount schedule can be used to influence stocking decisions and supply chain performance in single-period interactions between a supplier and buyer(s). In contrast to much of the work that has been done on single-period supply contracts, we assume that there are no interactions between the supplier and the buyer(s) after(More)